The total net worth of Hispanic households might reach $4.4 trillion by 2025, according to a new report from the Federal Reserve Bank of St. Louis. But the report predicts that much of that growth will be driven by the growing number of Hispanic households — not by the growing wealth of the average family.
Hispanic men and women made up about 16 percent of the U.S. population in 2010, and held $1.4 trillion dollars of overall wealth. That’s just 2.2 percent of the nation’s income, property, and financial assets, according to the report. By 2050, the Hispanic population will almost double, but the share of wealth Hispanics hold will likely remain disproportionately small.
The recession widened the wealth gap between white and Hispanic families. Hispanic families lost almost one-third of their net worth between 2007 and 2010. While white families were also hard hit, the average white family lost a smaller share of its total wealth than the average minority family, partly because white families tended to hold more types of assets and to have less money tied up in home equity.
The report’s authors, William Emmons and Bryan Noeth, made two projections for household wealth in the future. In the more optimistic scenario, they calculated that households would quickly rebound from the recession and revert to the long-term growth trends observed from 1989 to 2010. In the less optimistic scenario, they assumed no such rebound. The authors cautioned that their projections were, well, projections, and thus uncertain.
“In the more pessimistic scenario, the Hispanic share of total wealth would increase only because the Hispanic population is expected to grow faster,” they wrote. Under the more optimistic scenario, Hispanic wealth would grow to $4.4 trillion; under the less optimistic projection, it would grow to $2.5 trillion.
Yet even under the report’s more optimistic projection, Hispanic households would hold just 3.2 percent of the nation’s wealth. Wealth accumulation for all households would also widen racial wealth disparities, if past trends continue. Under the fast growth scenario, Hispanic families would possess 26.5 percent of the average American family’s wealth in 2025, up from 22 percent in 2010. In other words, even if everything goes well and the average Hispanic family gains wealth, by national standards they still wouldn’t be well off.
What We're Following See More »
Former Trump campaign adviser Rick Gates is expected to plead guilty to a raft of new tax and fraud charges filed against him by special counsel Robert Mueller on Thursday. Gates is expected to cooperate with Mueller's investigation.
Robert Mueller announced new charges against former Trump campaign chairman Paul Manafort advisor Rick Gates. "The new indictment contains 32 counts, including tax charges." The pair had been indicted on 12 charges in October. Since then, Gates's attorneys have asked to be excused from the case.
The FBI has reported that it failed to respond to a warning from "a person close to" Nikolas Cruz, the teen accused of killing 17 people at Parkland High School on Thursday. "It was the second time the FBI apparently failed to follow up on Cruz." On the first occasion, it failed to properly investigate Cruz after it was reported to them that he left the following comment on a Youtube video: "Im going to be a school shooter."
Florida Governor Rick Scott called on FBI Director Christopher Wray to resign following revelations that the FBI had failed to adequately investigate multiple warnings about Parkland High School gunman Nikolas Cruz. “The FBI’s failure to take action against this killer is unacceptable,'" said Scott. '...We constantly promote ‘see something, say something,’ and a courageous person did just that to the FBI. And the FBI failed to act.'" According to an FBI statement, the FBI failed to inform local offices of information regarding "Cruz's desire to kill people, erratic behavior, disturbing social media posts, as well as the potential of him conducting a school shooting."